This Share buyback initiative is very welcome as SP is Definitely undervalued Considering revenue of 693m and 10% of an underlining Ebitda @ 62m. while M/cap of 135m = x 2 Ebitda.
NTA is $9.14 a share, Net cash positive, annual Div of 70CPS, franking will reduce and therefore the Share buyback is an excellent option as capital management.
Capral has around 17.8m shares and in this first tranche of Share BB, the aim is to purchase up to 370k shares within CY23 which if successful will reduce total shares by 2%.
Give it a few more years of BB and fewer Shares in circulation and higher Div as the number of shares reduces and we may see the accumulative effect on the Share Price as fewer holders will part with their high-yielding shares as an income stream
CAA Price at posting:
$7.51 Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)